The US justice department has sent fur flying in the fashion world with an inquiry into price fixing at the most prestigious modelling agencies in New York.

The inquiry follows a civil class action suit filed by former models last year alleging that eight top agencies were breaching antitrust laws by effectively fixing commissions for booking jobs at 40%.

The agencies named in the suit include Elite Model Management, Ford Models and Wilhelmina Model Agency, which together represent some of the best-known faces on billboards and magazine covers. Elite is home to Claudia Schiffer, Ford to Rachel Hunter and Wilhelmina to Mark Vanderloo.

Edward Curtin, the general counsel for Elite, confirmed that the justice department had been in touch with the agency, but he said it was "some months ago" and that nothing had been heard since.

"There is no basis whatsoever in any of these claims. Modelling is one of the most ferociously competitive businesses in New York, and the concept of a fixed commission is ludicrous," he said.

According to the Wall Street Journal, the justice department inquiry is looking into the same allegations as the civil suit. A spokeswoman declined to comment.

The class action alleged that executives from the top agencies met regularly throughout the 1990s and discussed standard uniform contracts.

US district judge Harold Baer issued a preliminary ruling in favour of the models last month and allowed the case to be certified as a class action, representing thousands of models. A trial date had been set for December but is likely to slip into next year.

The agencies are contesting the claims and maintaining that the meetings were both legal and proper, under the auspices of a now defunct trade organisation.

Models typically pay agencies a 20% commission on work they do. But the agency also charges the client 20%.

New York state laws prohibit employment agencies from charging more than 10%, but the agencies argue they are managing the models and not simply employment agencies.

Dieter Esch, who controls Wilhelmina, declined to comment on the allegations or the justice department inquiry.

Justin Klentner, a former model, who joined the class action last year, told reporters at the time: "These agencies are getting rich, rich, rich off of 15-year-old girls and 18-year-old guys."